KUALA LUMPUR, Sept 8 (Bernama) -- Bursa Malaysia closed almost flat on Tuesday as buying interest rotated away from index heavyweights towards smaller-cap construction stocks, with sentiment affected by geopolitical uncertainty, said an analyst. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 0.39 of a point to 1,714.40 from Monday’s close of 1,714.79. The benchmark index opened 1.65 points lower at 1,713.14 and moved between 1,710.44 and 1,714.50 throughout the trading session. The broader market was almost evenly balanced, with decliners leading gainers 548 to 546, while 598 counters were unchanged, 1,107 were untraded and 25 were suspended. Turnover expanded to 4.13 billion units valued at RM3.14 billion from 3.60 billion units valued at RM2.45 billion on Monday.
Bank Negara Malaysia’s (BNM) surprise move to cut the Overnight Policy Rate (OPR) by 25 basis points to 2.75% — its first reduction since 2023 — has boosted overall sentiment. However, analysts believe the positive impact on Malaysian REITs (Real Estate Investment Trusts) will be modest . Key Rate Action BNM lowered OPR to 2.75% (from 3.00%) on Wednesday. Move seen as pre-emptive to support growth amid global uncertainties. Roughly half of economists polled by Bloomberg anticipated this cut. What Analysts Say Public Investment Bank Minimal earnings impact (only 1%-2% ) for REITs with floating-rate borrowings. Maintains neutral stance . Target price for IGB REIT raised to RM2.50 (from RM2.10) following Mid Valley Southkey mall acquisition. RHB Investment Bank Maintains “Overweight” on REITs. Strong domestic consumption and lower bond yields still support sector performance. Risks from SS...